Thacker

This appeal requires us to consider the effect of the Federal Communications Commission’s (“FCC”) cancellation of licenses held by a licensee in bankruptcy proceedings. Donald Thacker, in his capacity as trustee to the bankruptcy estate of Magnacom Wireless, LLC (“Magnacom”), appeals the district court’s decision to deny his claim to the proceeds from the FCC’s auction of new licenses for the radio spectrum previously covered by Magna-com’s cancelled licenses. We conclude that the FCC’s cancellation of Magnacom’s licenses extinguished Magnacom’s interest in those licenses and the underlying spectrum. Such cancellation did not result in any traceable proceeds, and did not constitute a lien-enforcement remedy. Therefore, Magnacom is not entitled to such proceeds. We have jurisdiction under 28 U.S.C. § 158 (d)(1) and affirm the decision of the district court.

I.

Under the terms of the Communications Act of 1934 (“Act”), the FCC grants licenses for use of the radio spectrum. The licenses give licensees the right to use segments of the spectrum in various geographic areas for specified terms, in accordance with FCC provisions. See 47 U.S.C. § 301 Pursuant to the Act, the licenses do…